Nervous Depositing USD To Binance US Exchange? Now They Will Have FDIC Backed Insurance
The U. S. branch of the largest crypto exchange in the world, Binance US, has recently announced that now its customers will be partially insured by the Federal Deposit Insurance Corporation (FDIC).
According to a recent blog from the company, all dollar deposits made by clients will be insured by the FDIC, which is an agency that was created to protect the consumers of the country. However, it should be noted that not all of the funds are insured. The insured value goes up to $250,000 USD in the event of loss of the funds.
The FDIC was created back in 1933, soon after the Great Depression. It was an important agency to provide more stability to the market after people lost almost all of their money during the depression and the years that followed it.
In related news, the company has also increased the maximum leverage that its clients can use on the platform. Starting this week, Binance’s clients of its futures platform can take up to 125x leverage, a considerable upgrade from the amount that the company let its clients take than before.
It is important to remember, though, that leverage is really tricky and that not everybody should be using it if they don’t have a way to pay if the investment goes the wrong way.